Dubai is a land of Expats. With more than 200 nationalities living in the country, UAE has become a home of many millennials who come, find a job and become a part of the city. However, finding a right accommodation is always a challenge for many; especially when there is a dilemma between buying and renting. For many, Dubai is just a temporary address, and for the same it’s always been preferred to get a rented apartment. However things are changing, and changing very fast.
Let’s have a look at some of the points, which would help us understanding the advantages of buying a property over living in a rented house.
- It’s an Investment: The unpleasant thing about renting is, each month your rental payment doesn’t go towards anything. It’s not moving you closer to owning your own home. Essentially, it’s cash down the drain. Why put money towards something that is not yours? Over the time, a home and/or property appreciates. It’s like buying a stock or even better.
- If you do that maths, it’s way cheaper: Despite the expensive initial down payment, owning a home is generally a lot cheaper than paying rent. This is because when you rent, not only are you paying your landlord’s mortgage, but you are also paying an additional sum on top because they will want to make a profit. Your money is going towards building up your landlord’s equity in the property, which means that they could choose to sell it at any time thanks to your contribution.
- Mortgage payments=Equity: Every month when homeowners pay their loan instalment, it helps in bringing down the credit, creating more equity in the home. Basically, homeowners are investing in their own home whereas the rental payment is going straight to the landlord’s pocket or paying their mortgage payment.
- Better Saving Accounts: Owning a home is not only cheaper than renting, but it forces you to save money at the same time. Your monthly payments are going towards equity that you can tap into for retirement, college expenses, etc. whereas rent just flies out of the window.
- Make your financial situation solid and sound: We are all fighting hard to earn money in a big city like Dubai; and for the same we always look for a better financial position in the society. Buying a house not only make our lives stable, but also gives us a pride of owning a property in one of the expensive cities in the world. Remember – if you are not residing, you can always rent or resale at higher Return on Investment (ROI).
With many reputed developers in Dubai launching budget-friendly apartments, buying a house has become an easy affair. You may easily find a studio apartment for AED 300,000 in Meydan, with super-easy payment plan.
Time to think smart, and act smarter. Let us know your take on this!